Quality Investor

Mistras Group, Inc.

Rank #174Value

MG · NYSE · Industrials

Mistras Group, Inc. (MG) — Rank #174 by gross profitability (GP/assets 0.35) · ROE 7.0% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001436126 · all metrics point-in-time as of the filing date.

About

Mistras Group, Inc. provides technology-enabled industrial asset integrity and laboratory testing solutions in the United States, Europe, the Middle East, Africa, Asia, and South America.

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The company offers non-destructive testing (NDT) services; pipeline inspections; Plant Condition Management Software; maintenance planning; and specialized engineering solutions. It also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical services, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services, including plant operations and management support, turnaround/shutdown planning, profit improvement, facilities planning studies, engineering design, process safety reviews, energy optimization evaluations, benchmarking/key performance indicator development, and technical training. In addition, the company offers scaffolding and rope access forb at-height and confined assets; certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; portable, handheld, wireless and turnkey NDT equipment; acoustic emission products and sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures; and ultrasonic testing equipment. Further, it provides asset protection solutions to detect, mitigate, and prevent degradation mechanisms, such as corrosion, cracking, leaks, and manufacturing defects; inspection, maintenance, and monitoring and data services; and quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. It serves renewable energy, alternative power generation, natural gas transportation, data centers, pipeline integrity, and additive manufacturing industries.

The company was founded in 1978 and is headquartered in Princeton Junction, New Jersey.

Industry
Security & Protection Services
Sector
Industrials
State
DE
Filer Category
Accelerated filer
Fiscal Year End
December 31

Price History

MG+102.8% · +15.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$620.12M

P/E (annual)

36.7

P/S (annual)

0.9

P/B

2.6

P/OCF (annual)

18.8

Shareholder Yield

-1.4%

Employees

4,800

Industry

Security & Protection Services

Exchange

NYSE

Signal Flags

2 green2 red
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Revenue declining YoYRevenue contracted year over year
Valuation convergenceEPS declining, shares diluting, and revenue growth decelerating simultaneously

Quality Profile

Profitability

1/1 pass
GP / assets
0.35
Return on equity
7.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.43
Current ratio
1.71×
Net cash
-$150.10M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
1.1%

Growth

1/2 pass
Revenue growth
-0.8%
Piotroski F-Score
6 / 9
Share dilution
1.4%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

25.9%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 1.4% — per-share value needs a total required return of 27.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 2.1%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

20.5%

r = 10% (base)

25.9%

r = 12%

30.5%

Net debt / market cap: 24.0%

Base FCF: $8.3M3Y mean FCF: $25.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
18.8xmed 38.3x59.6x

P / S

Price / revenue per share

0.4xFair
0.2xmed 0.4x0.6x

P / B

Price / book value per share

1.6xExpensive
0.4xmed 1.4x1.6x

P / GP

Price / gross profit per share

1.5xFair
0.5xmed 1.3x2.1x

P / FCF

Price / free cash flow per share

9.7xFair
3.1xmed 8.9x45.7x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.35

Primary signal (Novy-Marx).

4th of 5 SIC 87 peers

Return on equity

7.0%

Gross margin

28.2%

5th of 5 SIC 87 peers

Revenue growth (YoY)

-0.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2021202220232024
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

1.7%

Revenue CAGR (5Y)

4.1%

Earnings CAGR (3Y)

37.3%

FCF CAGR (3Y)

-15.6%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.43

5th of 5 SIC 87 peers (best = lowest)

Current ratio

1.71×

3rd of 5 SIC 87 peers

Quick ratio

1.44×

Net cash

-$150.10M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$8.31M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.51

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.1%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20172024
Capital Return
Decline
Op. Leverage
Value
Startup